The new speed limit will replace the 40km/h limit that was introduced seven years ago between Flinders, La Trobe, Spring and Spencer streets, Nine News reports.

The rule will be enforced to reduce the number accidents involving pedestrians and cyclists, particularly in the Hoddle grid.

According to Nine News, the change comes after a city council review of transport in central Melbourne produced several key recommendations in the city's transport strategy that will be released next month.

Co-ordination of public transport along with carparking and congested footpaths will also be reviewed.

The rule will be enforced in a bid to reduce the number accidents involving pedestrians and cyclists.

Variable speed zones are also being considered for roads such as the King St arterial, currently 40km/h, where a 30km/h zone could be impractical during off-peak times, reports theHerald Sun.

RACV senior manager Peter Kartsidimas said the motorists' group had supported 40km/h speed zones in the city's CBD.

"This speed limit is in use in Victoria in areas with high pedestrian activity and where workers are on roads," Mr Kartsidimas told the publication.

"RACV supports variable speed limits and believes every case should be judged on its merits."

Melbourne City Council Lord Mayor Sally Capp.

The change comes after Lord Mayor Sally Capp said the city needed to find the right transport balance, with the council shifting their focus onto pedestrians and public transport.

The council is confident this approach will make the roads safer as it focuses on changing people's behaviour, an attractive alternative to costly infrastructure like speed bumps.